OmnAuto (“All Car”) Members Janet Brunelle General Manager Zeal Patel Project Manager Deborah Anderson Legal Analyst October 20, 2003 Michael Janda Marketing Wayne Lett Research and Development Christopher Osborne Finance Scot Postlewait Web Designer Jeremy Wilson Technical Support 2 OmnAuto 1. 2. 3. 4. 5. 6. 7. Define the Problem US Government Issues Define the Solution Market Identified Issues and Risk Funding and Scheduling Conclusion October 20, 2003 3 Societal Problem Defined The U.S. National Traffic Safety Administration states that one in three vehicles are unknowingly being driven with one or more significantly under inflated tires. October 20, 2003 4 Problem Characteristics In a survey of 2,350 drivers: • 66% of drivers don’t know where to find recommended tire pressure • 45% of drivers think you can visually inspect a tire for low pressure • Only 9% of drivers accurately and regularly check their tire pressure *Rubber Manufacturer’s Association October 20, 2003 5 Safety is at Risk • 23,000 crashes per year caused by tire blowouts • 535 of those are fatal *National Highway Traffic Safety Administration October 20, 2003 6 Federal Mandates • Transportation Recall Enhancement Accountability and Documentation Act (TREAD Act) • Tire pressure monitoring – Section 13 • Monitoring will be phased in October 20, 2003 7 Federal Mandates Issues • Provisions for direct and indirect monitoring • Declared ineffective and must be rewritten for only direct monitoring *Detroit News October 20, 2003 8 Alert Level – Federal Mandates Ideal pressure = 35 psi cold 50.0 Pressure 45.0 40.0 Ideal Direct Alert Indirect Alert 24psi 35.0 30.0 25.0 20.0 0 25 50 75 100 125 150 175 200 225 250 275 Temperature October 20, 2003 9 Proposed solution identified The OmnAuto system provides the capability to alert the driver of low pressure relative to temperature and maintains a history of pressure, temperature, vehicular speed, and mileage. October 20, 2003 10 Objectives • Operation when the key is in the “on” position • Record tire pressure, temperature, vehicle speed, and mileage every 2 minutes while vehicle is “on” • Data is recorded in separate memory unit October 20, 2003 11 Objectives Continued • Method to record significant equipment changes – tire replacement or repairs • Availability of data to consumers • Availability of data to mechanics • Use of Graphs to analyze data October 20, 2003 12 Historical Data Output Temp vs Miles 230 210 190 170 Temp Tire1 Tire2 150 Tire3 Tire4 130 110 90 70 79990 80000 80010 80020 80030 80040 80050 80060 80070 80080 Miles October 20, 2003 13 Component Diagram October 20, 2003 14 Pros • OmnAuto will save lives • Pressure will be monitored more frequently than consumers currently average • Will meet the Federal Mandate as currently written, and the changes ordered by the Federal Appeals Court • Required technology is already available October 20, 2003 15 Pros Continued • Tires will wear more evenly • Increased fuel efficiency • Tire and Auto designs will both benefit due to the valuable “Real-World” historical data • Consumers can play an active role in the safety of their vehicle October 20, 2003 16 Cons • 67% will rely on the system instead of checking tire pressure manually • Relies on existing vehicle electrical system • Human interaction to upload data from the system • Reprogramming required on tire change or rotation *Rubber Manufacturer’s Association October 20, 2003 17 What Our Solution Will Do • Monitor for temperature and pressure, and alert driver based on both • Maintain history of pressure, temperature, vehicular speed, and mileage • Data will be available to any service provider with industry standard equipment October 20, 2003 18 What Our Solution Will Not Do • • • • Adjust tire pressure Prevent sensor failure Monitor Tread wear Indicate level of under pressurization October 20, 2003 19 Market Defined and Analyzed “It is already apparent that there are several courses of action required for this to be successful but they all are dependent upon a better-informed consumer.” -- John Bolegoh, SmarTire - February 2001 Comments to the National Highway Traffic Safety Administration October 20, 2003 20 Market Defined • Safety is critical to consumers • New safety devices will be quickly embraced *Dohring Company October 20, 2003 21 Market Defined - 2 • Federal Mandates = Must be OEM equipment • Our solution raises the bar on safety; must appeal to manufacturer October 20, 2003 22 Market Defined - 3 • 11,425,000 vehicles produced in 2001 – – – – 1,142,500 by Nov 2004 3,998,750 by Nov 2005 7,540,500 by Nov 2006 100% of all cars built after Nov 2006 *Bureau of Transportation Statistics October 20, 2003 23 October 20, 2003 x x x Evalu ate H istory x x x x Maintain His tor y x x x x x x Alert Pressure & Temp Intellivalve Motorola SmarTire SensoNor Tire-SafeGuard OmnAuto Monitor Tempe ra ture Monitor pr ess ure Competition Matrix x x x 24 Technical Issues • Connections to odometer, speedometer, and keyless entry system • Processor Chip/Board • Memory • Housing • Integrated Software October 20, 2003 25 Management Methods Issues • Obtaining a contract with automaker • Coordination of software and hardware teams • Employee Lifecycle • Legal issues • Project Deadline October 20, 2003 26 Risk Issues • Liability if the sensors are not functioning properly • Proprietary protocols for existing car networks • Government Mandates • Time to market October 20, 2003 27 Resource Issues • Existing sensor manufacturers meeting our production needs • Maintain project schedule • Initial development funding prior to establishing a contract October 20, 2003 28 Time Feasibility Aug Jul Jun May Apr Mar Feb Jan 2004 Dec Nov Oct Sept 2003 Concept Development 2 months Research & Development 5 months Construction 5 months Testing 5 months Implementation 2 months SBIR Phase Key Phase 0 Phase 1 Phase 2 October 20, 2003 29 Monetary Feasibility # Man Months Project Manager 1 12 Marketing/ Public Relations 1 12 Software Engineer 2 24 Hardware Engineer 1 4 Test Engineer 3 19.5 Lawyer 1 3 Technical Writer 1 1 Support Staff 2 16 Professional Driver 1 1 Salary $ 86,282.00 $ 41,637.00 $ 115,422.00 $ 21,381.33 $ 86,230.63 $ 26,893.75 $ 3,877.67 $ 54,597.33 $ 5,000.00 Total Development Cost $ 441,321.71 October 20, 2003 30 Cost Per Unit Estimated Product Cost per Unit October 20, 2003 56MB memory chip Processor Board/Chip Housing Connecting Hardware Overhead Sensors $ $ $ $ $ $ 60.00 120.00 100.00 20.00 45.00 75.00 Total $ 420.00 31 Market Share Required Development Cost Cost per Unit $ $ 441,321.71 420.00 Sales Price per Unit $ 433.00 Units sold for Breakeven Cars needing sensor in 2005 Market Share to Break even October 20, 2003 29,421 4,000,000 0.736% 32 Conclusion • Tires are not properly inflated • Federal Mandate is not strong enough • If data is available, safety will improve, both long and short term • If we save only one life, OmnAuto will be a huge success. October 20, 2003 33